German inflation dives to over 2-year low

ANKARA (AA/APP): Germany’s wholesale inflation plummeted to a 26-month low in March, much lower than the market estimate, official data revealed on Friday.

Wholesale prices increased 2% year-on-year in March, slowing from an 8.9% annual gain in February, the Federal Statistical Office (Destatis) announced. The market estimate was a 4.4% hike in wholesale prices in Germany.

March’s reading was led by a 16.4% annual surge in prices for food, beverages and tobacco, Destatis noted. On the other hand, the cost of used materials and residues (down 29.0%), petroleum products (down 17.9%), and ores, metals and semi-finished metals (down 14.1%) were significantly lower from a year earlier in March. On a monthly basis, wholesale prices inflation rose to 0.2% in March.